Ilorah, Richard1
1School of Economics and Management, University of Limpopo, South
Africa
Source:Development Southern Africa; Mar2008, Vol. 25 Issue 1, p83-98,
16p
Trade is crucial for economic growth, with ex****ts providing earnings
to finance im****ts. Trade also promotes investments and knowledge
transfer. Trading countries exploit their comparative advantages to
promote self-sufficiency, which is obviously better than dependence on
foreign aid, whether low interest-bearing loans or transfer payments.
All aid comes with some kind of conditionality attached, amounting to
substantial burdens that often outweigh possible benefits. Donors
often replace the administrative machinery of recipient governments,
undermining their sovereignty and autonomy. These governments then
struggle to extricate themselves from implied commitments to donors
and prevent donor governments interfering in their domestic affairs.
This paper looks at Africa's poor trade performance, arguing that
among the consequences are the continent's continuing dependence on
foreign aid and the accompanying burdensome negative sentiments from
the rest of the world. It recommends that the new African programme
New Partner****p for Africa's Development be developed to a full
economic integration to expand the regional markets.
|
